Which of the following statements regarding the annuity method is true?

The straight-line method of recapture assumes the same recapture rate for every year of the investment. This means that the total investment is evenly distributed across the years of the investment period, leading to a consistent recapture amount throughout. Each period would reflect an equal share of the total investment value being recaptured, which can simplify calculations and provide predictability in financial projections.

When evaluating why the statement is true, it's essential to understand that the straight-line approach contrasts with methods that might emphasize variability in investment recovery, such as those based on diminishing returns over time. By assuming a uniform recapture rate, this method avoids the complexities involved with fluctuating rates that might better reflect real-world investment performance but can complicate analysis and financial planning.